Airlines will spend an extra $100bn on jet fuel this year as oil prices jump following the Iran war, the International Air Transport Association (Iata) has warned.
Willie Walsh, Iata director general, said jet fuel prices are expected to be 70 per cent higher year on year, at the 2026 Iata Annual General Meeting in Rio de Janeiro, Brazil.
He said: “When war broke out in the Middle East in March, oil prices jumped and jet fuel prices skyrocketed. As a result, we expect average jet fuel prices to be 70 per cent higher year on year – that will add $100bn to our collective fuel bill this year.”
The report on the state of the global air transport industry added that although jet fuel demand is “holding up”, profitability is set to almost halve from $43bn in 2025 to $23bn in 2026.
Iata added that 86 per cent of travellers “expect fares to track the oil price”, while 49 per cent “expect to spend more on travel” this year.
According to Walsh, the “tough year for all airlines” will particularly hurt carriers yet to recover from the impact of Covid, and those operating in the Gulf.
In May, Spirit Airlines abruptly ceased all operations, collapsing under severe financial pressures, including a sharp rise in fuel costs exacerbated by the Iran War.
Aviation bills have also risen due to aerospace supply chain “failures to deliver aircraft and engines as promised”, said Iata.
The global airline trade association added that order backlog is currently over 18,000 aircraft, a failure that cost airlines $11bn in 2025.
In May, airlines dramatically escalated flight cancellations, with data from aviation analytics firm Cirium showing 296 departures from UK airports were cancelled – 0.75 per cent of the total scheduled flights.
In Europe, Lufthansa’s airline group announced in April that it would cancel 20,000 flights over the following six months to save fuel.
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